Framework

Five families of financial ratios

The question it answers

Before lending to or investing in a firm, which families of ratios should a finance manager read its financial statements through to judge whether it is healthy or weak?

Origin
Elliott and Elliott, 2019
Diagram type
Hub diagram
Level of analysis
Firm
Stack of clay coins beside a rising glass bar chart, icon for finance

Diagram

Five families of financial ratios

Financial health
Profitability
Efficiency
Liquidity
Solvency
Market prospects

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Elliott, B. and Elliott, J. (2019) Financial Accounting and Reporting, 19th edn. Harlow: Pearson.No DOISource page